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Aave freezes Avalanche lending to block $3.3B Binance hack funds from being used as collateral

Market News
30 Oct 2026, 01:09 WIB
Crypto Briefing
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Bearish
Aave freezes Avalanche lending to block $3.3B Binance hack funds from being used as collateral

Aave has frozen its lending markets on Avalanche to prevent a suspected hacker from using stolen AVAX as collateral following a $3.3 billion outflow from Binance hot wallets. The hacker moved about 1.81 million AVAX and $8.4 million USDT across multiple chains, prompting Aave and stablecoin issuers Tether and Circle to freeze related assets to block misuse. This precaution protects Aave's liquidity providers from potential losses if stolen collateral is used for borrowing. The incident highlights the tension between DeFi's permissionless ideals and practical emergency controls. The investigation and market freeze duration remain ongoing concerns.

As of Oct 30, 2026 05:22 WIB, Aave's token (AAVE) is trading at Rp2.253.898, down 8.48% in the last day on Pluang, reflecting notable market pressure. Avalanche (AVAX) is also lower, priced at Rp153.180 with a 6.62% decline, while Tether (USDT) remains stable, up 0.26% at Rp18.207. The significant outflows and asset freezes coincide with these price movements, with AAVE's market cap standing at Rp35,75 trillion on Pluang.

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